Pact moves NICO closer to road system

North of 60 Mining News – November 22, 2019

 

Last updated 9/26/2020 at 11:17am

Fortune Minerals Ltd.

Fortune's proposed NICO Mine in Northwest Territories would produce battery-grade cobalt, gold, bismuth and copper. Road access, however, is needed to deliver the concentrates produced to a refinery for further processing.

Fortune Minerals Ltd. Nov. 21 announced it has signed an agreement with the Tlicho First Nation for building a road that connects the NICO cobalt-gold-bismuth-copper project to the community of Whati, a Northwest Territories community about 51 kilometers (32 miles) south of Fortune's proposed Nico cobalt-gold-bismuth-copper mine.

The 97-kilometer (60 miles) Tlicho Road, which will connect Whati to Highway 3 and Canada's contiguous road and rail infrastructure is being funded by the Northwest Territories (75 percent) and Canada (25 percent) governments.

Fortune's agreement with the Tlicho government details the conditions under which a road can be extended further north to NICO.

"This access agreement is a significant step forward for Fortune Minerals as it provides for the access required to construct and operate the NICO mine," said Fortune Minerals Vice President of Environmental and Regulatory Affairs Rick Schryer. "The access agreement demonstrates the strong working relationship between Fortune Minerals and the Tlicho government as the company advances the NICO project toward construction."

The agreement also specifies the conditions for financial security for reclamation of the road that will be built by Fortune and held by the Tlicho government. Fortune can now complete the process to secure the water license and land use permit required to construct the road upon receipt of NICO Project financing.

"The signing of an Access Agreement with Fortune is an important step in the approvals process," said Tlicho Grand Chief George Mackenzie. "We are now looking forward to concluding the required Impact and benefits agreement with Fortune Minerals, thereby ensuring Tlicho citizens, communities and companies will benefit from the construction and operation of the NICO mine."

In the meantime, Northwest Territories is making headway on the Tlicho Road and expects to have the access to Whati open to the public by 2022.

According to recent land use inspection reports, crews have brushed 32 kilometers (20 miles) of the road corridor and the roadbed has been laid for 25 kilometers (16 miles).

Once complete, this permanent all-season road connection between Whati and the highway system will reduce the cost of living in Whati, which is currently only accessible by air and winter trail.

Nico copper cobalt gold bismuth Northwest Territories Tilcho Road map

Fortune Minerals Ltd.

For Fortune, the Tlicho road, along with the NICO project access road, will provide the ability to truck metal concentrates from its proposed mine to the rail head at Hay River for delivery to a refinery and downstream processing to value added products.

A 2014 feasibility study details plans for a 4,650-metric-ton-per-day operation at NICO that would produce an average of 1,615 metric tons of battery-grade cobalt; 41,300 ounces of gold; 1,750 metric tons of bismuth; and 265 metric tons of copper annually.

Once developed, NICO could provide a North American supply of the cobalt needed in lithium-ion batteries as the global automotive industry transitions to electric vehicles.

–SHANE LASLEY

 

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